ABSTRACT
This chapter presents a number of vignettes which highlight how different organizations have approached the challenge of commoditization. Working within the fully commoditized end of the continuum they have to contend with significant competitive pressures from companies which include Wal-Mart and Target as well as customers who expect more product for less outlay. Ryanair is a perfect example of how an organization is capable of transforming itself from a high to a low cost provider. The chapter demonstrates how radical such a transformation has to be if it is to succeed and how it is possible to change consumer behaviour to allow the organization to expand and take market share from its established rivals. One of the principal reasons why Wal-Mart has achieved this pre-eminence is because of its highly efficient supply chain management practices. The final aspect is associated with inventory management which is where Wal-Mart has probably invested the most in IT.
